The ECL-2300 and the ECL-1400 both qualify for the Federal Tax Credit that applies to biomass heating and the Montana State Alternative Energy System Tax Credit!!

• You can receive 30% (up to $1,500) of the boiler cost in Federal Tax Credits

• You can receive $500 per person up to $1000 in Montana State Tax Credits.

Please read on for more information:

Federal Tax Credit FAQ

Q:  What is a federal consumer tax credit?

A:  Consumers claim the credit on their federal income tax form at the end of the year. This new credit reduces the amount of tax you owe.  The new credit is a reduction of total income tax at the bottom of your return, up to $1500.  This tax credit is a non-refundable tax credit available for individuals who pay taxes and who make energy-conscious purchases to improve the energy efficiency of their home.

Note: With regard to tax credits vs. tax deductions, in general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions - such as those for home mortgages and charitable giving - lower your taxable income. 

Q. Are biomass stoves installed in new homes, or vacation homes, covered by this tax credit?

A. No. The IRS is very clear that this credit applies only to existing principal residences, thus new homes and vacation homes would not qualify, nor would homes owned as rental units.

Q: Are prior purchases covered?

A: Prior purchases made between January 1, 2009, and June 1, 2009 are covered if the manufacturer offers a certification statement for the product.

The IRS Guidance can be found at http://www.irs.gov/pub/irs-drop/n-09-53.pdf.

Montana State Tax Credit Information

The Alternative Energy System Credit is a tax credit against income tax liability for the cost of purchasing and installing an energy system in a Montana resident's principal home that uses (1) a recognized nonfossil form of energy such as, but not limited to, solar energy, wind energy, solid waste, and organic waste or (2) a low emission wood or biomass combustion device such as a pellet or wood stove.  The credit cannot exceed $500. Two or more people may each qualify for the credit, as long as the building in which the investment is made is owned by all of the people claiming the credit.  For example, a couple who jointly own their home may each claim a credit up to $500 each or $1,000 for the couple. Any unused balance of the credit can be carried forward and applied to future income tax liabilities for a period of four succeeding tax years.  For further instructions on the alternative energy system credit, and to calculate this credit, see Montana Form ENRG-B.